Maryland’s largest producer of cannabis is investing millions to build a Cecil County factory that will make edibles to meet anticipated demand for the July 1 debut of the state's recreational market.

SunMed Growers President Jake Van Wingerden said he is building a $16 million, 25,000-square-foot factory as part of the company's 500,000 square-foot complex at 127 Worsell Manor Road in Warwick to churn out edibles. Edibles, like baked goods or candies infused with the drug, offer an easy first step for customers curious about cannabis since they are not smoked and often do not have the harsh smell of traditional cannabis.

"The vast majority of people in this country do not smoke," Van Wingerden said. "But everybody eats." 

The site will likely employ between 30 to 50 people once it’s operational within the next few weeks, Van Wingerden said. SunMed has raised $6.3 million out of an $8 million venture capital debt round to hire more people and purchase supplies to meet the anticipated demands of the recreational market. SunMed already produces processed forms of cannabis, like vape pens, pre-rolled joints and concentrates, but this is its first attempt at edibles. Van Wingerden plans to move production of vape pens and similar products from a temporary facility into the $16 million factory. The SunMed edibles line will include gummies, chocolates and baked goods.

Edibles are already part of the medical industry, but regulators are concerned about their impact on public health. The high from edibles is different than smoked flower, with a longer delay between consumption of the product and the "high" and longer-lasting effects. Children or pets can also mistake edibles for normal chocolates or gummies and accidentally consume the drug. 

Maryland has several regulations surrounding edibles to try to limit accidental consumption, including that the drugs cannot resemble a mascot or character and that each dosage has to be in its own separate packaging. 

Along with a massive increase in the domestic market, Maryland may see an influx of "cannabis tourism" from neighboring states like Pennsylvania or West Virginia that don't have legal recreational use, Van Wingerden said. 

An influx of new customers is an opportunity for many cannabis businesses to recover after several years of lower profits due to the oversupply of cannabis, the Covid-19 pandemic and the unique tax and financing issues cannabis businesses face as a federally illegal industry. Many states across the country are dealing with an oversupply of cannabis as more producers come online but that glut could quickly reverse into a shortfall once thousands of new customers enter the market.

“We are going from the current medical population of around 160,000 people to potentially millions of people, even if they buy it as a novelty,” Van Wingerden said.